As far as the past 48hrs' rally is concerned, its over for now. The exhaustive burst towards 1.3385 marks the last wave formation and we are due for some counter-directional correction (Titled: More Spillover - Update1 27 Mar12)
While I am bullish the E$ & EURxxx in the months ahead, price action warns caution at this point in time. Failure to stay above 1.3390/420 handle signals insufficient upside momentum and this leaves the E$ vulnerable for downside probe. The month/quarter end close this Friday will provide more hint.
For today, I see 1.3360/70 to cap and 1.3240/60 (1.3210/20 news induced) to hold and I would sell into the rally. (7/10)
It takes a daily close above 1.3420 to invalidate the near term bearish view of E$.
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| EURUSD Daily Chart |
By the way, one must note that if I am E$ & EURxxx bullish, it does not necessarily mean I am USD negative. Remember, E$ is the new USD...... its a complex relationship!
All the best and don't forget to enjoy those adrenaline rush!
In all trading, managing your risk must always be your top priority. Getting the direction right is but only 33.33% chance of a profitable trade!
In all trading, managing your risk must always be your top priority. Getting the direction right is but only 33.33% chance of a profitable trade!
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